Digital BW, The Print

First, I'm not a practicing attorney, so this is my own personal 
opinion, and NOT intended as legal advice. It only lays out what I 
understand the law is and how I PERSONALLY might react. Your mileage may 
vary.

Now for some relevant info from my personal perspective for IJM 
customers.  

My understanding, after some research, is that anyone who buys after a 
Chapter 11 filing stands in no better position vis IJM than does any 
creditor, should IJM for financial reasons be unable to fulfill the 
order (that's part of WHY people need to know about the filing AND part 
of why it is public).  That means if they charge someone and cannot 
deliver, you'd likely only get pennies back on the dollar (as did those 
with PanAm and Midway Express airline tickets). Of course, that would 
not be relevant IF  IJM only charges your credit card when product 
actually ships. 

I have no idea how/when IJM charges orders, but I assume, like most 
online vendors they do not charge the client/customer until product is 
shipped to them.  If that's NOT the way they currently do business, I 
personally, would not place an order without a commitment from IJM NOT 
to charge my card until the products shipped.

As for Credit Card protection of a customer's order, my understanding is 
that such coverage in cases of a vendor filing for bankruptcy is very 
limited, because: Chapter 11 filings are public, the customer therefore 
could have been informed (it may be a legal fiction, but that's the 
argument), and once a Chapter 11 filing is made, the buyers and vendors 
are assumed to be on notice that the Chapter 11 could become a Chapter 7 
(liquidation) filing if the Chapter 11 plan is not approved by the 
filing parties creditors and/or the court. So, before placing further 
orders, I'd probably check with my credit card company, explaining that 
I know of the Chapter 11 filing, and ask them whether my purchase is 
still protected (Midway Express and PanAm customers who had post Chapter 
11 filing tickets only received pennies on the dollar back AFAIK) to its 
full value.

Please understand, this is not to say that IJM would ever purposely take 
orders they knew they could not fulfill.  That would be fraudulent, and 
I don't think they are dishonest.  Reality is that  they could honestly 
intend to fill orders and find that,  as a result of the filing, their 
vendors/suppliers simply refuse to deliver expected product to them that 
they need to fulfill the orders (especially on credit). Such a situation 
can affect ANY firm who files for Chapter 11 (i.e. in some Airline 
instances they had to stop flying temporarily or permanently simply 
because no-one would sell them any more fuel).  Often, the filer signs a 
reaffirmation agreement (a simple outline of that is at: 
<http://www.mauilaw.com/article5.htm>) to continue existing 
relationships with preferred suppliers, providers of equipment bought on 
time, etc. to avoid exactly these types of issues.

To put it all in a nutshell.  Once a vendor files for Chapter 11 it's 
"Caveat Emptor.." (buyer beware)



 
Keith Krebs

"Just some guy," caretaker of the Multiverse's largest EPSON printer 
User Community (highly recommended by Vogon Poets and MegaDodo 
Publications), at:
http://groups.yahoo.com/group/EPSON_Printers/
and  the Multiverse's largest Canon printer User  Community at:
http://groups.yahoo.com/group/Canon-printers
"For the rest of you out there, the secret is to bang the rocks together 
guys"